Tesla CEO Elon Musk is coming close to earning the first $346 million tranche of options in a record-breaking pay package deal, after the electric car manufacturer’s stock over doubled in the last three months.
Shares of Tesla soared 9% to a record high Monday. They should rise another 6% to put Tesla’s inventory market worth at $100 billion and then be sustained at that level for a one-month as well as six-month average to be able to fuel the vesting of the first of 12 tranches of options granted to Musk to purchase Tesla stock.
Musk has already hit an operational target that is also essential for the options to vest.
For Musk’s subsequent tranches to vest under the terms of the 2018 package, the corporate’s market cap must continue to sustainably rise by $50 billion increments over the settlement’s 10-year interval, with the billionaire incomes the complete package if Tesla’s market capitalization reaches $650 billion and the EV manufacturer achieves many revenue and profit targets.
A full payoff for Musk, who is also the majority owner and CEO of the SpaceX rocket manufacturer, would surpass anything previously approved to U.S. executives, based on Institutional Shareholder Services, a proxy advisor that recommended traders reject the pay package deal at the time.
Musk receives no salary or cash bonus and only options that vest based on Tesla’s market cap and milestones for growth.